CSB Bank Q1 Results: Net profit falls 14% to Rs 113 million on rise in provisions

During the quarter under review, the bank’s credit to deposit (CD) ratio stood at 83.89 per cent as compared to 87.05 per cent in Q1 FY24. It increased sequentially from 82.68 per cent in Q4 FY24. Illustration: Ajay Mohanty

2 minutes of reading Last updated: July 29, 2024 | 18:03 IST

Private lender CSB Bank reported a 14 per cent year-on-year (YoY) decline in net profit at Rs 113 crore in the first quarter of fiscal 2025 on account of a rise in provisions.

As a result, the lender’s net profit fell 25.1 per cent from Rs 151 crore in the fourth quarter of fiscal 2024.

Provisions for non-performing assets increased by 273 per cent to Rs 20 crore from Rs 4 crore in Q1 FY24.

The bank’s net interest income (NII) declined marginally by 0.56 per cent to Rs 361.97 crore in the reported quarter, as compared to Rs 364.01 crore in the same quarter a year earlier. Consecutively, NII declined by 6.23 per cent from Rs 386.03 crore in Q4 FY24. Interest expense rose 47 per cent year-on-year to Rs 470 crore.

The bank’s net interest margin (NIM) declined to 4.36 per cent from 5.40 per cent in the first quarter of fiscal year 2024. In the fourth quarter of fiscal year 2024, the net interest margin (NIM) stood at 5.04 per cent.

Advances grew by 18 per cent year-on-year to Rs 24,844.01 crore at the end of June 2024, while sequentially, they grew by 2 per cent.

Total deposits rose 22 per cent year-on-year to Rs 29,920 crore and were up 1 per cent compared to the fourth quarter of fiscal 2024.

The share of low-cost deposits – the Current and Savings Accounts (CASA) indicator – stood at 24.90% at the end of June 2024, compared with 30.8% a year earlier. It then fell from 27.20% at the end of March 2024.

In the quarter under review, the bank’s loan to deposit (CD) ratio stood at 83.89 per cent as compared to 87.05 per cent in Q1 FY2024. It then increased from 82.68 per cent in Q4 FY2024.

Its gross non-performing assets (GNPA) ratio rose to 1.69 per cent in June 2024 from 1.27 per cent a year earlier. This was sequentially higher than 1.47 per cent in March 2024. The net NPA ratio rose to 0.68 per cent in the quarter under review from 0.32 per cent in the corresponding period a year earlier. Sequentially, net NPA increased to 0.51 per cent in March 2024.

First published: July 29, 2024 | 18:03 IST